Vancouver — The Lion Kimberlite Dykes project in eastern Sierra Leone is expected to start producing in 2005, following a joint-venture agreement between Australian-listed diamond miner
Crown Diamonds, by spending US$3 million over three years, will earn a 51% interest in Mano River’s subsidiary, Kono Diamond. Kono holds the three Kono licences on the Lion Kimberlite Dykes property.
Mano River has explored the Lion kimberlite dyke by means of mapping, sampling and mini-bulk testing. Ten dykes, each of which measures up to 6 km, are outlined. Artisanal mining of weathered kimberlite from the dykes, coupled with Mano River’s mini-bulk testing, indicates areas of high-grade value. Grades of up to 94 carats per hundred tonnes (cpht) have been returned from the Lion-5 dyke.
Underground mining of the dykes will be aided by the competent granitic host rock, resulting in stable walls and limited dilution. Stone values of US$200 per carat are now being achieved from production at the adjacent Koidu pipe.
Crown Diamonds is an experienced underground miner, having produced diamonds from kimberlite fissure mining operations in South Africa. The Messina and Star operations, as well as the recently acquired Helam and Dancarl mines, are expected to produce more than 150,000 carats of diamonds in 2005.
Extensive alluvial workings are found throughout the Kono Diamond Field, which produces 300,000-400,000 carats per year at an average value of greater than US$200 per carat.
The recently reactivated Koidu diamond mine, held by 40% by
Crown Diamonds has 296 million shares outstanding and trades at A23 per share, resulting in a market capitalization of A$68 million.
Mano River has 210 million shares outstanding and a market capitalization of $53 million at its current trading range of 25.
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